FremantleMedia, producer of TV shows such as The X Factor, The Price is Right and Britain’s Got Talent, has signed a £47 million deal to hand its pensions liability to Pension Corporation.

Source: Thames/ Rex Features

These transactions appeal to companies that have closed down their in-house schemes and involve an insurance company receiving an up-front fee in exchange for paying staff pensions possibly decades into the future.

Fremantle closed its main pension scheme in March 2013, announcing a plan to move current staff to an outsourced pension arrangement with Scottish Widows. The company is now reducing its financial exposure to the older scheme, valued at £63 million overall at Fremantle’s latest accounts, dated December 31, 2012.

Mark Riddleston, group finance director at Fremantle, described the deal as “the next stage in our de-risking plan”. He said: “From the company’s perspective, locking down risk and removing volatility was key.”